93% of SMEs say networks result in new business leads, but connections aren’t strong enough
New research from American Express shows that small and medium-sized enterprises (SMEs) led by owners with strong professional networks experience markedly higher growth and profitability – indicating a powerful competitive advantage that networking can provide.
The Peer Power study, conducted in partnership with The Entrepreneurs Network, highlights a clear connection between the strength of professional networks and improved commercial performance; SME owners citing robust networks are almost twice as likely to report revenue growth in the past year compared to those with weaker networks. Likewise, 86% of respondents with strong networks said their businesses were profitable last year, compared to 66% among those who stated they had weaker networks.
Moreover, business owners who turn a profit tend to rely on their networks more often (63%) than those merely breaking even or operating at a loss (50%), suggesting that staying connected with peers can contribute to success.
Based on responses from 500 founders and owners at UK SMEs, the research found that over nine in 10 (93%) said their professional network had directly led to new business leads in the past year, and three-quarters (75%) regard their professional network as essential to growth.
Yet, a lack of meaningful connections remains a barrier for many; nearly six in 10 (58%) wish their network was stronger; over two-fifths (41%) of respondents acknowledge not having the right network limits their business’ potential, and almost a third (32%) think they aren’t good at networking.
Ruchi Sharma, vice president, UK Commercial at American Express, said: “At American Express, we understand that connection drives growth – whether that’s through trusted partnerships, customer relationships, or peer-to-peer collaboration. Our research suggests that networking is more than just a soft skill – it’s a strategic growth lever. SME business owners who spend time in building meaningful connections unlock new opportunities and stronger commercial performance.”
Philip Salter, founder of The Entrepreneurs Network, said: “For the past decade, we’ve been bringing entrepreneurs together to share ideas – and what these findings confirm is the growing appetite we see among founders for networking opportunities. As the data shows, getting out there and engaging with other entrepreneurs shouldn’t be seen as an optional extra, but a core necessity if you want to scale a business.”
Through its Small Business Cards and Corporate Solutions, American Express provides tools that help business owners drive efficiencies, manage cashflow and support growth. Business owners can also earn Membership Rewards® points on everyday business spend, which can be redeemed on travel, experiences or purchases – that may help support their life outside, as well as inside, work.